Cintas Raises FY2027 Outlook After Q1 Revenue Jumps 10.9%

Cintas Corporation raised its fiscal 2027 outlook after first-quarter revenue reached $3.01 billion, up 10.9% from $2.72 billion a year earlier. The uniform and workplace-services company now expects full-year revenue of $12.15 billion to $12.27 billion, compared with its previous range of $12.10 billion to $12.25 billion.

The company also lifted its adjusted diluted earnings-per-share forecast to $5.45 to $5.54 from $5.36 to $5.50. Cintas said the updated guidance excludes the expected impact of its proposed acquisition of UniFirst as well as future acquisitions, and its adjusted EPS forecast excludes non-recurring costs tied to the UniFirst deal.

The stronger outlook followed a quarter in which organic revenue growth was 8.9%. Cintas defines that measure as revenue growth adjusted for acquisitions, foreign-exchange movements and differences in workdays. According to the company’s September 23 earnings release filed with the SEC, fiscal 2027 has one more workday than fiscal 2026, an assumption already reflected in the annual guidance framework.

Margins expanded faster than revenue

Gross profit rose 13.7% to $1.55 billion in the three months ended August 31. Gross margin increased to 51.5% of revenue from 50.3% a year earlier, a 120-basis-point improvement. Cintas said the quarter produced record revenue and a record gross margin, with Chief Executive Officer Todd Schneider pointing to continued investment in technology, capacity and talent.

Operating income increased 15.2% to $711.9 million from $617.9 million. Operating margin reached 23.6%, up from 22.7% in the prior-year period, even though the quarter included $14.4 million of expenses related to the proposed UniFirst acquisition. Excluding those costs, the underlying operating result would have been higher, although Cintas did not present an adjusted operating-income figure in the release.

Net income climbed 12.3% to $551.7 million. Diluted EPS rose 13.3% to $1.36 from $1.20, while adjusted diluted EPS was $1.39 after excluding the $0.03 per-share effect of UniFirst-related costs. That adjusted figure was 15.8% above the comparable prior-year EPS.

The quarter also showed a higher tax burden than a year earlier. Cintas reported an effective tax rate of 20.0%, compared with 17.6% in the first quarter of fiscal 2026. The company said both periods were affected by discrete items, primarily the tax-accounting effect of stock-based compensation.

Guidance rises, but UniFirst remains outside the forecast

The revised revenue range implies a narrower and slightly higher outlook than Cintas issued in July. At that time, the company expected $12.10 billion to $12.25 billion of fiscal 2027 revenue and adjusted diluted EPS of $5.36 to $5.50. The new ranges raise the low end of revenue guidance by $50 million and the high end by $20 million. For adjusted EPS, the low end rises by $0.09 and the high end by $0.04.

Cintas continues to assume constant foreign-exchange rates and no future acquisitions in its annual revenue forecast. It also expects net interest expense of about $103 million for fiscal 2027, compared with $101.2 million in fiscal 2026. The company said that estimate does not include debt activity or commercial-paper issuance that could be associated with future share repurchases or acquisition activity, including financing needed for UniFirst.

The UniFirst acquisition is important to the outlook because it would materially expand Cintas, but its expected financial contribution is not included in the guidance. Cintas and UniFirst announced the roughly $5.5 billion acquisition in March, with UniFirst shareholders set to receive $155 in cash and 0.7720 Cintas shares for each UniFirst share. The structure is governed by a merger agreement under which Cintas will acquire all outstanding UniFirst shares.

UniFirst shareholders approved the deal in June, and the Federal Trade Commission subsequently issued a request for additional information as part of its antitrust review. Cintas said Wednesday that it remains engaged with the FTC and still expects the acquisition to close before the end of calendar 2026. Until it closes, the current fiscal 2027 forecast represents Cintas on a standalone basis rather than the financial profile of the enlarged business.

Route-based businesses and cash generation support the quarter

Cintas’ largest operating segment, Uniform Rental and Facility Services, generated $2.29 billion of first-quarter revenue, up from $2.09 billion a year earlier. First Aid and Safety Services produced $388.5 million, compared with $334.7 million, while the businesses grouped in All Other generated $330.7 million, up from $292.4 million.

Profitability improved across the segment mix. Uniform Rental and Facility Services posted $575.1 million of operating income, First Aid and Safety Services produced $99.5 million, and All Other reported $51.7 million. The corporate line included the $14.4 million of UniFirst-related costs, leaving consolidated operating income at $711.9 million.

Cash generation strengthened as well. Net cash provided by operations was $572.3 million, up from $414.5 million in the prior-year quarter. After $107.5 million of capital expenditures, Cintas reported free cash flow of $464.8 million, compared with $312.5 million a year earlier. Free cash flow is a non-GAAP measure that the company uses to relate operating cash generation to spending needed to maintain and expand the business.

Cintas also continued returning capital to shareholders. It paid $208.8 million in quarterly dividends on September 15 and said share repurchases during the first quarter and through September 22 totaled $544.7 million. Those buybacks are not assumed in the adjusted EPS guidance for the rest of the fiscal year, so future repurchases could change the eventual per-share result.

The next major variable for the annual outlook is the pending UniFirst acquisition. Cintas has raised its standalone revenue and adjusted EPS expectations after one quarter, but the company is still separating that forecast from the costs, financing and operating contribution that would come with closing the acquisition. That distinction will remain relevant until the FTC review is resolved and the deal reaches its expected closing date.